Stephen Friedman’s extensive contacts and expertise made him a go-to player on Wall Street. But it was precisely that web of connections that raised conflict-of-interest issues in his latest job at the Federal Reserve Bank of New York.

Kevin M. Warsh, a Federal Reserve System governor, is one of the leading candidates to succeed Timothy Geithner as president of the Federal Reserve Bank of New York.

The appointment of John Thain to head troubled Merrill Lynch proves, yet again, the long reach of Goldman Sachs.

Thain, currently CEO of the New York Stock Exchange, began his career as an investment banker at Goldman. He went on to become co-president and co-chief operating officer.

As the New York Times reports, Thain was chosen not only for his success at the exchange, but also for his background at Goldman.

The Washington Post had a good profile yesterday of Timothy Geithner, president of the Federal Reserve Bank of New York, who is “facing his first big test as point man between the powerful global firms in the world’s financial capital and the policymakers who oversee them from Washington.”

The Post says Geithner is a strong crisis manager. During the turmoil in the debt markets, Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson Jr. have been in touch with Geithner regularly.